System Design, Remodeling Governance Efficiency And Managers Of State-owned Enterprises

China’s state-owned enterprises (thereafter SOEs) are not the strict definition of enterprises in market economy, the current institutional arrangement of SOEs make them to be the administrative branch units with some business tasks, and they have also many other characteristics, such as special political attribute, economic attribute, attribute of culture, and they rely on the special allocation of resources and the specific operating environment. It thereby causes political role, administration identity and status level of comprehensive effects, as well as non-market selection mechanism under the dissimilation of managers. This dissimilation of managers is the key to low efficiency in SOEs governance, also is the main cause of insider-controlling, compensation mechanism alienation and low SOEs business performance.If not considering the system design and system arrangement of state-owned enterprises lead to the particularity, and dissimilation of managers which is a obstacles to improve the efficiency of SOEs governance, only by the transplantation of Western companies governance model of corporate governance under the guidance of their theories, particularly in Anglo Saxon rule rule-oriented corporate governance model, actually very difficult to really improve the governance of SOEs efficiency, this lets SOEs run in low efficiency occupys the massive public resources and human resources. This is the largest Chinese economy waste.The particularity of SOEs is too hard to be eliminated, under the background, through the change of institutional design which leads to change those institutional arrangements, which could solve the problem of dissimilation of managers in SOEs, and enhance directly the governance efficiency during the process of gradually reforming in SOEs, so as to improve the efficiency of their business activities.To adjust top designing and to reconstruct the framework of SOEs and their managers, to set up a new management institution to eliminate the dissimilation of managers in SOEs, to transit from the simple copy of rule-oriented governance model to establish a model of culture-oriented governance, which will enhance governance efficiency in SOEs.